Seeing REDD: The Opportunity for a Climate-Conservation Double Dividend Through Avoiding Deforestation Annah Peterson, UNEP ETB Louise Gallagher, UNEP ETB David Huberman, IUCN Ivo Mulder, Independent Consultant
Outline • Background and Research Questions • Example of a REDD project in voluntary markets • Structure of non-profit implemented REDD projects • Structure of for-profit REDD projects • Exploring how for-profit REDD projects can incorporate an additional incentive for biodiversity protections
1.) Can IPES Work for Biodiversity? We specifically consider the option of integrating biodiversity IPES with carbon IPES. 2.) Can REDD provide this link? How can we make sure that forests protected through REDD provide biodiversity conservation in addition to reduced emissions?
While REDD has the potential to deliver a climate-conservation double dividend, this potential may not be realized Monoculture Invasive Only Reduced Emissions Diverse Natural Growth Reduced Emissions and Biodiversity Conservation
Noel Kempff Climate Action Projectwww.noelkempff.com • Protects 832,000 hectares of tropical forest in Bolivia • Offsets awarded to the Bolivian Government to be sold on Chicago Climate Exchange • Revenue earned will go to park protection, community development and climate change capacity building
$$ $ Non- Profit Org Investors VERs RE VERs BC Third Party Verifier Non-Profit REDD Projects Project Area RE = Reduced Emissions VER = verified emission reductions BC = Biodiversity Conservation Double Dividend
$$ CI BC VERs RE Third Party Verifier For-Profit REDD Projects Project Area Positive Externality ? RE = Reduced Emissions VER = verified emission reductions BC = Biodiversity Conservation
Growth of the Chicago Climate Exchange Source: www.theccx.com
$$ ? CI BC Positive Externality $ $$ BC VERs RE $ Third Party Verifier CI VERs RE Third Party Verifier Project Area Project Area
2 Types of Biodiversity Beneficiaries • General A globally diffuse set of actors who demand general conservation efforts for the option and existence values they provide • Specific Groups that benefit from the conservation of biodiversity within a specific area (non-profits, pharmaceutical companies, ecotourism companies, research institutions, governments, communities)
2 Possible Payment Mechanisms 2 Types of Biodiversity Beneficiaries Fund • General A globally diffuse set of actors who demand general conservation efforts for the option and existence values they provide • Specific Groups that benefit from the conservation of biodiversity within a specific area (non-profits, pharmaceutical companies, ecotourism companies, research institutions, governments, communities) Partnership
PROS Addresses the public goods nature of biodiversity conservation CONS Quantifying biodiversity Defining threshold Deciding subsidy amount Diverting financing Fund BC $ $$ $ CI VERs RE Third Party Verifier Fund = Per hectare subsidy offered to only high biodiversity REDD projects
PROS No quantifying biodiversity, defining thresholds, deciding subsidy amounts or coming up with financing necessary BI BC $ $$ $ CI VERs CS Third Party Verifier Partnership = matching of carbon investors with biodiversity investors in a virtual marketplace CONS • Limited application – there are only so many specific biodiversity demanders
Save the Giant Jumping Rat Habitat Protection $$ $$$ RE $ VERs ClimateFirst Third Party Verifier
In Summary… • REDD has the potential to link carbon and biodiversity IPES, if and only if a more targeted approach to REDD is adopted – one that encourages investment in only high biodiversity forests. • One way to ensure this is by combining payments for both reduced emissions and biodiversity conservation into one investment in REDD through either a fund or a partnership.
Thank You!! Annah Peterson Chemin des Anemones, 11-13 CH-1219 Geneve Tel: +41-22-917-8609 Email: firstname.lastname@example.org Website for further information: www.unep.ch/etb